Executive Summary

Q1 FY2025 revenue was $4.08M, down 1.6% year over year; gross margin compressed to 12.8% versus 15.6% last year, and net loss widened to $1.34M with loss per share of $0.18 .
Mix shifted toward Asia-based customers (68.8% of revenue) on rising e-commerce demand; ocean freight revenue grew 7.8% while airfreight declined 8.2% on lower volume .
Management expects a near-term rebound in Q2 on holiday-driven air demand and operational capacity expansions (e.g., new DFW facility); however, no numeric guidance was issued .
Pharmaceutical distribution capability was built post-Q1 via Hupan Pharmaceutical and began contributing revenue in Q2 ($0.22M at 44.2% GM), diversifying the model amid freight headwinds .

What Went Well and What Went Wrong

What Went Well

Ocean freight revenue increased 7.8% YoY ($1.8M vs. $1.7M), supported by higher processed volumes (1,430 TEU vs. 1,290) .
Asia-based customer revenue surged 65.8% to $2.81M (68.8% of total), reflecting demand from large e-commerce platforms .
Management highlighted readiness for seasonal air demand and efficiency gains from facility and tech investments: “We have expanded our production capacity… new Dallas-Fort Worth site” .

What Went Wrong

Airfreight revenue fell 8.2% to $2.2M on volume decline (7,273 tons vs. 7,816); U.S.-based customer revenue fell 48.2% to $1.27M .
Gross margin compressed 280 bps to 12.8%, driven by reduced airfreight revenue and higher warehouse, customs, and terminal charges .
G&A more than doubled (+114.7%) to $1.84M, driven by salaries, professional fees (up 1,839.6% to $340k), and other operating costs as a listed company; net loss widened to $1.34M .

Financial Results

Headline P&L and Margins

Metric	Q1 FY2024 (Sep 2023)	Q1 FY2025 (Sep 2024)	Q2 FY2025 (Dec 2024)
Revenue ($USD)	$4,148,476	$4,081,554	$3,595,587
Gross Profit ($USD)	$647,543	$522,539	$(42,231)
Gross Margin %	15.6%	12.8%	N/A (gross loss)
Net (Loss) Income ($USD)	$(304,260)	$(1,335,407)	$64,224 (table) / text says $(1.9M)
EPS (Basic & Diluted, $)	$(0.05)	$(0.18)	$0.01 (table) / text says net loss

Note: Q2 FY2025 textual narrative cites “net loss was $1.9M,” while the attached financial table shows net income of $64,224 and EPS of $0.01 for the quarter; investors should treat this discrepancy cautiously and prioritize the tabular financials pending clarification .

Segment Revenue and Mix

Segment	Q1 FY2024	Q1 FY2025	Q2 FY2025
Airfreight ($USD)	$2.4M	$2.2M	$2.0M
Ocean Freight ($USD)	$1.7M	$1.8M	$1.4M
Pharma Distribution ($USD)	N/A	N/A	$218,086
Asia-based Customers ($USD; % of total)	$1,694,223; 40.8%	$2,809,636; 68.8%	$2,750,202; 76.5%
U.S.-based Customers ($USD; % of total)	$2,454,253; 59.2%	$1,271,918; 31.2%	$627,301; 17.4%

KPIs

KPI	Q1 FY2024	Q1 FY2025	Q2 FY2025
Airfreight Volume (tons)	~7,816	~7,273	~4,459
Ocean Volume (TEU)	1,290	1,430	1,046
Pharma GM %	N/A	N/A	44.2%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (directional)	Q2 FY2025	None provided	Management anticipates a rebound driven by holiday air demand and e-commerce	Qualitative “raised” narrative (no numeric range)
Ocean freight charges	Near term	None provided	Continued decrease supporting import/export activity	Favorable trend commentary
Capacity/Operations	Near term	None provided	Expanded DFW facility to 46,657 sq. ft., increased staffing; API integrations with partners	Operational readiness improved

No formal numeric guidance ranges (revenue, margins, OpEx, tax, segment) were furnished in Q1 materials .

Earnings Call Themes & Trends

Note: No Q1 FY2025 earnings call transcript was found in our document catalog; we searched filings and press releases and the broader web but did not identify a Q1 transcript [ListDocuments results showing 0 transcripts; Internet search did not yield a Q1 call link].

Topic	Previous Mentions (FY2024)	Previous Quarter (Q2 FY2025)	Current Period (Q1 FY2025)	Trend
Asia e-commerce focus	FY2024 revenue +42.3%; airfreight +117.6%; strategic e-commerce partnerships	Asia-based customers +29.4% first half; shift away from U.S. customers	Asia customers 68.8% of Q1 revenue; strong demand from platforms	Increasing Asia mix
Capacity expansion (DFW)	DFW expansion announced (to 46,657 sq. ft.)	Multi-hub strategy ORD/DFW/LAX reiterated	DFW expansion cited to meet higher volumes	Execution ongoing
Ocean freight pricing	—	Freight revenue/volume decline; margin pressure	Management notes continued decrease in ocean charges aiding trade	Tailwind developing
Cost discipline/G&A	FY2024 G&A $4.14M (+77.5%)	Q2 G&A $1.91M; first half $3.75M (+103.7%)	Q1 G&A $1.84M (+114.7% YoY), pro fees +1,839.6%	Elevated as a listed company
Pharma distribution	Acquisition announced; expected ~$7M annual revenue	Pharma revenue $0.22M; 44.2% GM; Sinopharm/Kelun agreements	Not active in Q1; foundational partnerships underway	Emerging diversification

Management Commentary

“Although total revenue declined slightly by 1.6%… we achieved solid gains in cross-border ocean freight… stronger demand from Asia-based customers.” — Henry Liu, Chairman & CEO .
“We anticipate a rebound in revenue for the next quarter, driven by increased air freight demand for the upcoming holiday season… backed by… strategic facility expansions, including our new Dallas-Fort Worth site.” — Henry Liu .
FY2024 positioning: “Expanding airfreight… with the volume of air freight processed doubling to over 26,000 tons… partnerships with leading e-commerce platforms solidify our position.” — Henry Liu .

Q&A Highlights

Not available: A Q1 FY2025 earnings call transcript was not found in SEC filings, press releases, or our document catalog; Q2 FY2025 included a call announcement but no Q&A content in documents .

Estimates Context

S&P Global consensus coverage appears limited; we were unable to retrieve Q1 FY2025 EPS and revenue consensus. Values retrieved from S&P Global.*
Actual revenue for Q1 FY2025 was $4.08M; with no consensus available, we cannot assess a beat/miss. Values retrieved from S&P Global.*

Key Takeaways for Investors

Mix shift toward Asia-based e-commerce customers is accelerating (68.8% of Q1 revenue), supporting ocean freight resilience but pressuring U.S.-customer volumes; watch for continued mix changes and margin implications .
Airfreight softness and fixed cost inflation drove margin compression; management expects seasonal recovery in Q2, but numeric guidance was not provided—execution against holiday surge is the near-term trading catalyst .
Elevated G&A (public-company costs, hiring, professional fees) is a clear overhang; monitor cost normalization and the pace of operating leverage as volumes recover .
Pharma distribution offers high-margin diversification (44.2% GM in Q2 on $0.22M revenue) and strategic partnerships (Sinopharm, Kelun, Huiyu); scaling this segment could buffer freight cyclicality over the medium term .
Operational capacity (DFW expansion, API integrations) supports volume capture; if holiday demand materializes, sequential topline/GM improvement into Q2 is plausible despite ocean rate declines .
Data discrepancy in Q2 net income/loss (table vs. narrative) warrants caution; prioritize tabular financials and seek clarification in subsequent filings .

Appendix: Additional Relevant Press Releases (Q1 Context and Forward-Looking)

Medical logistics acquisition (Hupan Pharmaceutical) anticipated ~$7M annual revenue; builds healthcare distribution capability .
Sinopharm partnership for essential medicines storage/transport; subsequent $1.5M sales agreement effective Jan 1, 2025 .
Kelun Pharmaceutical distribution agreements expanding portfolio .
DFW operations expansion more than doubled space to 46,657 sq. ft. .
Pick & Pack Fulfillment launch across ORD/DFW/LAX enhances e-commerce execution .

Lakeside Holding Ltd (LSH)·Q1 2025 Earnings Summary